Vienna Deputy Group CEO Franz Cosina will resign after taking responsibility for the company's losses in Italy, which reduced Austria's largest third-quarter insurer's profits by 30%.
Profits for the third quarter fell to 77m euros, compared to 110m euros a year earlier, the company said in its quarterly report. The decline was caused by the "huge increase" in car insurance claims in Italy and the "price war" in Romania, according to Vienna Insurance.
The company's performance can be characterized as tides, CEO Peter Hagen said in the report. Given the "strongly negative performance" of car insurance in Italy, Cosina will leave the company by December 31.
Kosina's resignation is "an example of our corporate culture," in which executives take responsibility for what happens in the units under their control, Hagen said at a news conference.